Home News Blockware Mining raises $25 million to triple hashrate from Kentucky facility

Blockware Mining raises $25 million to triple hashrate from Kentucky facility

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The American mining company Blockware Mining raised in the second round of funding $ 25 million in excess of the subscription limit. The firm will direct funding to scale up Bitcoin mining in North America.

Thus, as China takes tough measures against Bitcoin mining, international mining companies are attracting investment.

So, according to the press release, Blockware Mining’s total capital raised has reached $ 32 million. Blockware is already using this money to grow its operations.

Blockware Mining reported that outside investment enabled the acquisition of 14,000 ASIC miners in the second quarter of 2021. The firm will install 8,000 pieces of equipment in its data center in Kentucky. And resell 6,000 to other farm operators in the United States.

“We have successfully negotiated the acquisition of a secure mining rig supply chain, a challenging process that has been further complicated by the pandemic. The lack of equipment creates a significant barrier for companies to enter the busines. And we have committed significant resources to close more deals and fund our growth”, said Michael Stoltzner, CEO of Blockware Mining.

The company also plans to build another 30 MW Kentucky mining farm. With the option to expand to 100 MW in the future.

The fast-growing company plans to accelerate its entire global hash rate in a year. Blockware Mining expects the company’s hashrate to exceed 1 EH/s by mid-2022, as of June 2021 it’s 0.3 EH/s.

According to Stolzner, the United States already accounts for 10% of the computing power of the Bitcoin network.

Blockware is seizing the moment

Blockware’s plans to scale up come amid China’s recent crackdown on Bitcoin mining. Which has already shut down mining operations in provinces including Xinjiang, Sichuan and Yunnan.

Recall, according to the vice president of Foundry Kevin Zhang, by the end of June, up to 90% of Chinese miners will turn off their equipment due to the prohibitive measures of the authorities. MicroStrategy CEO Michael Saylor called the decisions of the latter a “trillion dollar mistake”. He note that it will benefit the Bitcoin mining industry in North America.

According to Alejandro de la Torre, vice president of the Poolin pool, the era of China’s dominance in the industry is over. Miners are leaving the country and moving installations to other regions. The main directions of migration are the USA, Canada and Kazakhstan.

This is a big change. Although the Bitcoin network is decentralized, Chinese miners have long owned most of the total hashing power – an estimated 65% as of April 2020.

Bitcoin mining difficulty is expected to drop more than 20% following a network correction this week.

“While some may interpret this as a significant reduction in network security, we see it as a unique window of opportunity for US mining companies to further decentralize hash rates outside of China,” said Blockware Mining President and CEO Michael Stoltzner.

The largest manufacturer of mining equipment Bitmain has offered its Chinese clients assistance in organizing business overseas.

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